Crude Oil and Natural Gas Under Pressure From Stronger Dollar

Crude oil was lower due to profit taking overnight as it extends last week's narrow trading range. Stochastics and the RSI are diverging and are turning bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 67.30 would confirm that a short term top has been posted.

If September extends the rally off July's low, the reaction high crossing at 74.25 is the next upside target.

Monday's pivot point, our line in the sand is 71.38

First resistance is last Friday's high crossing at 72.84
Second resistance is the reaction high crossing at 74.25

First support is the 10 day moving average crossing at 69.56
Second support is the 20 day moving average crossing at 67.30

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The U.S. Dollar was lower due to light profit taking overnight as it consolidates some of last Friday's rally. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near term.

Closes above the reaction high crossing at 79.77 are needed to confirm that a short term low has been posted. If September renews this summer's decline, the 75% retracement level of the 2008-2009 rally crossing at 75.73 is the next downside target.

First resistance is the overnight high crossing at 79.25
Second resistance is the reaction high crossing at 79.81

First support is the 10 day moving average crossing at 78.61
Second support is last Wednesday's low crossing at 77.52

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Natural gas was higher due to short covering overnight as it consolidates some of last week's decline but remains below broken support marked by the 20 day moving average crossing at 3.774. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near term.

If September extends last week's decline, the reaction low crossing at 3.459 is the next downside target. Closes above the 10 day moving average crossing at 3.789 would temper the near term bearish outlook in the market.

Natural gas pivot point for Monday is 3.73

First resistance is the 10 day moving average crossing at 3.79
Second resistance is last Monday's high crossing at 4.16

First support is last Friday's low crossing at 3.66
Second support is the reaction low crossing at 3.46